IGT reports loss in 2015

IN ITS third time reporting results since its April merger with GTECH, International Game Technology PLC reported a $55.9 million loss, or 39 cents per diluted share, last year, compared with profit of $99.8 million, or 49 cents per diluted share, in 2014.
IN ITS third time reporting results since its April merger with GTECH, International Game Technology PLC reported a $55.9 million loss, or 39 cents per diluted share, last year, compared with profit of $99.8 million, or 49 cents per diluted share, in 2014.

PROVIDENCE – In its third time reporting results since its April merger with GTECH, International Game Technology PLC reported a $55.9 million loss, or 39 cents per diluted share, last year, compared with profit of $99.8 million, or 49 cents per diluted share, in 2014.
IGT reported a 23 percent increase in revenue over the year, to $4.7 billion from $3.8 billion.
On a pro forma basis, which is the combined results of both companies for both full-year periods, revenue fell 12 percent over the year, to $5.1 billion from $5.8 billion.
Financial information for all of 2015 includes IGT for the second, third and fourth quarters, and only GTECH in the first quarter; the reported 2014 full-year results are for GTECH only. Pro forma numbers represent combined results of both companies.
For the fourth quarter, profit was $83 million, or 37 cents per diluted share, compared with a loss of $150.1 million, or 87 cents a share, a year earlier.
For the fourth quarter, revenue grew 43.5 percent to $1.4 billion from $951.1 million, reflecting the acquisition of “legacy IGT,” according to a company news release. On a pro forma basis, revenue fell 2.6 percent to $1.365 billion from $1.402 billion.
The company said revenue growth reflected “strong gaming product sales” and “sustained lottery growth.” During the quarter, it said 11,562 gaming machines were sold worldwide and global lottery same-store sales, excluding Italy, rose 6 percent.
“We ended a year of transformation with a strong quarter for our lottery and gaming operations, enabling us to reach the high end of our EBITDA guidance,” Marco Sala, CEO of IGT, said in a statement “We established IGT as the global gaming leader with a commitment to being a customer-first organization and to deliver the content, technology and expertise that drives player demand. We are confident that we have established a solid foundation from which we can continue to lead the gaming industry and grow our business.”

Among the business segments, most had year-over-year increases, such as North America Gaming & Interactive, which had $1.1 billion in revenue in 2015, a 732 percent increase over 2014’s $132.5 million.

The North America Lottery had $1 billion in revenue, 11.2 percent more than $940.1 million in 2014, and International had $853 million in revenue, a 35.3 percent increase over 2014’s $630.6 million. Italy reported a 19.2 percent decline, however, to $1.7 billion in 2015 from $2.1 billion the year before.

Cash flow from operations in 2015 fell 26.3 percent to $786 million.

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The company was carrying $8.3 billion in total debt at the end of 2015, compared with nearly $3 billion on Dec. 31, 2014.
Alberto Fornaro, chief financial officer, said growth for core operations is expected this year.
“Our financial condition is solid, placing us in a strong position to pursue our growth objectives, continue to reduce debt and remunerate our shareholders,” Fornaro said.

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